Mahindra Class Action Gains Momentum, Dealers File Complaints at State Level

A lawsuit initiated by St. Louis-based would-be Mahindra pickup dealer Jerry Ackerman, has piqued the interest of 45 other expectant dealers seeking refunds and punitive damages from Indian automaker, Mahindra & Mahindra Ltd (Mahindra) and US importer, Global Vehicles USA (GV).  Additionally, another 70 dealers recently met in Atlanta to discuss joint legal action directly against Mahindra & Mahindra.

Class Action Claim

As we reported in April, Ackerman and Automotive Leasing Corp. filed a federal class action claim against both Mahindra and GV.  The claim states that despite Ackerman’s requests, both Mahindra and GV have refused to release the money paid for three Mahindra franchises.  The class action lawsuit is open to any entity that entered into at least one Dealer Sales and Services Agreement and paid money for the right to sell Mahindra products and accessories.  The suit seeks actual and punitive damages for breach of contract.

According to Automotive News (via Autoblog), around 45 (of around 350) other dealers have shown interest in joining Ackerman’s class action claim.

State Grievances

Another 70 dealers met in Atlanta (GV is headquartered in nearby Alpharetta) Georgia last month to discuss taking legal action directly against Mahindra.  Global Vehicles has not responded to email requesting response on the Ackerman claim, but Mahindra Planet is surmising that they are the organizers of the Atlanta meeting and are possibly encouraging the dealers to organize and seek legal action against Mahindra directly.

The 70 Mahindra franchisees, lead by New Hampshire car dealer Joseph Yergeau, intend to file complaints against Mahindra directly with their state motor vehicle law enforcement agencies.  These dealers feel that Mahindra and its failure to deliver its over-promised compact diesel pickups lies solely with Mahindra itself.  Yergeau says, “Our beef is with Mahindra, not Global.  Mahindra refuses to to talk to us.  But at some point they are going to have to deal with their dealers.”

A Third Action

Since Mahindra claimed that its distribution agreement with GV was null and void back in August of 2010, GV has focused on litigation and an arbitration process to come to an accord with Mahindra and satisfy the empty-handed dealer network they began developing in 2008.  After being forced to drop their federal lawsuit directly against Mahindra in February, GV has focused entirely on the arbitration set to begin in August of this year. 

According to Automotive News, some dealers have been contributing to a legal defense fund in support of GV’s arbitration efforts.  After an arbitration decision is rendered, GV will once again have the option of filing another federal lawsuit against Mahindra if they choose to do so.

Resolution

With three separate actions occurring simultaneously: 1) federal class action, Dealers v. Mahindra and GV; 2) Dealers v. Mahindra, via state law enforcement; 3) GV v. Mahindra arbitration, a clear outcome and conclusive arrangement may not emerge for quite some time.

As an anonymous dealer on a dealer’s forum put it:

“In a nutshell, for my investment to be worth a plug nickel, Mahindra needs to do one of three things: 1) Give an absolute confirmation, "Global's Dealers are Mahindra's dealers regardless of the outcome of the Arbitration; or, 2) Global needs to win the Arbitration; Or, 3) Mahindra needs to buy either a majority interest in Global's stock (thus we become Mahindra's dealers) or buy out Global's Assets including all the franchise agreements (thus we become Mahindra's dealers).

Clearly, there is little here we dealers have contol over!
You're right--What a Mess!”

Source: Automotive News, via Autoblog

U.S. to see Ssangyong SUV’s in 2-5 Years



Ssangyong SUT 1 Concept via PickupTrucks.com/Jalopnik.com

 Ssangyong Motor Co. Chairman, Yoo Lee, has told Automotive News (via AutoWeek) that his company ultimately intends to sell its Korean-made SUV line in the United States “two to three years from now, but within five years at the latest.”
Lee foresees some struggles in complying with complex US homologation requirements stating “We will need time to fulfill all strict emission and safety regulations.” Clearly, Ssangyong understands the challenges (lessons learned from Mahindra) but intends to pursue the strategic US market.

Battle of the Brands
News of Ssangyong’s US ambitions still leaves Mahindra dealers and current/former Mahindra distributor, Global Vehicles USA (GV) in a vacuum.

Mahindra & Mahindra Ltd, wholly owns Ssangyong Motor. Ssangyong’s line of small SUV’s are primarily powered by 4-cylinder turbodiesel engines with a few gasoline-fueled options. It is likely that Ssangyong will want to focus on diesel engines for the United States.

Mahindra Dealers and Global Vehicles may be legitimately concerned that Mahindra’s Ssangyong takeover has created a loophole which would allow M&M to bypass GV and some 350 dealers who have committed to selling Mahindra-branded pickups and SUV’s powered by 4-cylinder turbodiesel engines.

Rendering of a Mahindra branded, Ssangyong Korando C via IAB

The Ssangyong brand name (or as PickupTrucks.com’s Mike Levine surmises, a newly created brand name) could be used on any Mahindra or Ssangyong built vehicles imported to the United States. Creating a new brand dedicated to the US market could potentially circumnavigate the ongoing legal battle between GV and M&M. This could allow Mahindra to establish its own import and distribution enterprise, and bypass the current Mahindra dealer network set up by GV. The dealers and GV are legitimately concerned that they could be left in the dust.

Conflict of Interest
There is little sense in Mahindra bringing competing diesel-powered brands and products to an already challenging and competitive market. Cherry-picking the best products from Mahindra and Ssangyong and rolling them into a unified brand may be more strategically sound.

Mahindra is extremely dedicated to the globalization of the Mahindra brand name and has established decent brand recognition in the US with their tractor and information technology divisions. On the flip side, the Mahindra small truck brand in the US has become a symbol of Mahindra’s inability to create a truly global automotive product and execute an enchanting business and marketing strategy in the United States. A new brand name may help bury these negative impressions.

Source: AutoWeek

Updated: GV Drops Lawsuit against Mahindra

Updated 24-Feb-2011: For the last few days the official North American Mahindra website operated by Global Vehicles USA, Inc. has been down.  When typing the url www.MahindraNA.com in your browser, an error is returned stating that the domain name does not exist.  Also note that the GV's corporate website, www.GV-USA.com is now "under construction". 

Mahindra posted an official statement on the dismissal of GV’s lawsuit last week. It confirms that the “arbitral tribunal in London issued an Award confirming that the tribunal has exclusive jurisdiction to resolve all disputes relating to Mahindra and Global Vehicles’ relationship, and it has directed Global Vehicles to stop all current litigation & not file any further litigation against Mahindra relating to the parties’ current dispute.”

Vehicle dealers and distributors are fairly well protected by US law from strong arm tactics or bullying by manufacturers under the Automobile Dealer’s Day in Court Act of 1956. By abandoning US litigation (at least for now), GV is kicking that blanket of protection off the bed. At this point, GV has consciously decided to commit all of their effort and confidence into the UK arbitration process.

Since a verdict isn’t expected until August of this year, expectant Mahindra fans have a long summer ahead to predict the results and debate what those results will mean for the way Mahindra vehicles will be distributed in the US. The good news is that this gives Mahindra time to perfect their products for an eventual US launch. The bad news is that established manufacturers appear to be on the brink of refreshing the small pickup market in the US.

As we have said many times before, the saga continues.

Disappointing EPA Fuel Economy Data for Mahindra TR40 Released

Updated 07-FEB-2011 - Andy from MahindraTruckForum.com has posted an official response from Global Vehicles on the EPA results: "Global Vehicles has seen the EPA results for the Mahindra TR40, 4WD, automatic pickup truck posted on their website, the results are different than expected but our expectations from promises made by Mahindra has always been 29 to 30 miles per gallon for a 2WD truck, and somewhat lower for a 4WD, we have sent a message to Mahindra for further explanation and will forward as soon as we receive the answer."

 The EPA has released its Estimated New EPA MPG fuel economy rating for the US model Mahindra TR40 pickup. The EPA rates the 2011 TR40 (4-door) pickup, 4-cylinder diesel, with 4-wheel-drive and automatic transmission at 19 mpg/city and 21 mpg/highway.

For comparison, a 2011 Toyota Tacoma, V-6 gasoline, with 4-wheel-drive and automatic transmission is rated at 16 mpg/city and 20 mpg/highway.

The data is of little consequence with the continued absence of the Indian made trucks on US soil. Whether or not this data had an affect on Mahindra’s dismissal of US distributor, Global Vehicles USA remains to be seen. However, it is possible that competitive analysis of fuel economy figures for other US market pickups was also a consideration. At this time, the Mahindra North America website maintained by Global Vehicles still claims a highway rating of 30 mpg.

Thanks to ArmyStrong on MahindraTruckForum.com for the tip!

Source: http://www.fueleconomy.gov/

US Mahindra-Navistar Alliance: A Possibility

Hope is fading fast for a timely resolution to the battle for distribution rights to sell the first Indian made pickup trucks in America.
Over the last six months, Americans anticipating the launch of Mahindra’s TR20 and TR40 diesel pickups have instead witnessed a war of words played out in US courts, UK arbitration, and scalding press releases. The conflict between US based distributor, Global Vehicles USA (GV), and Indian industrial conglomerate and automaker, Mahindra & Mahindra Ltd (Mahindra), has played out like an epic Hollywood divorce.

The occasional glimmer of hope that Mahindra and GV could resolve their differences and bring TR pickups to market have regularly led to solemn disappointment for hopeful customers. The resulting rollercoaster ride has left some potential buyers barfing at the exit and others running to get back in line for another ride.

Recent statements by Pawan Goenka, automotive sector president of Mahindra & Mahindra, pours more fuel on the fire:

"There is always the possibility of having an alliance with Navistar in the US as we have an alliance with them in India already, but nothing has been finalized yet,”

Sentiment in the Indian press indicates that Mahindra does not have any interest in continuing it’s partnership with GV no matter how the legal battle ends. Mahindra officials refuse to comment on the lawsuit, and little word has made its way out of GV’s Alpharetta, Georgia headquarters in months.

Although Mahindra seems bent on bypassing the company who laid much of the groundwork for their US automobile entry (GV), they have consistently stated that they see the US as a key strategic market for their brand. Judging by their acquisition of Korean automaker, Ssangyong Motor, and the development of more worldly vehicles like the W201 SUV, Mahindra is on track for launching US products… some day.

Source: Business Standard

December Mahindra Launch Date Is Now “No Date”

PickupTrucks.com is reporting this morning via AP reports that Mahindra is no longer stating that a thrice delayed US launch date of December 2010 is expected for their India-made small diesel pickup trucks.


Mahindra & Mahindra Ltd’s vice chairman and managing director, Anand Mahindra, told an interviewer that “we’re still interested in getting into the US”. However, he went on to say that “we don’t want to turn this into a war of words” regarding a very public legal and PR battle over distribution of the pickups with US importer Global Vehicles USA (GV).

GV has maintained that they intend to move forward with introducing and launching the vehicles in US despite Mahindra’s continued statements that they have terminated their contract with GV and no longer regard them as a business partner. GV went so far as to officially place an order for $35 million of TR20 and TR40 pickups with Mahindra on September 24th only to have it rejected a few days later.

The Mahindra soap opera continues.
Source: PickupTrucks.com

GV Responds to Rejection of Mahindra Pickup Order

From the press release issued yesterday:


ALPHARETTA, Ga., Sept. 28 /PRNewswire/ -- Indian company Mahindra and Mahindra has improperly rejected a valid $35 million-plus factory order placed on Sept. 24 for U.S.-spec Mahindra pickup trucks, exclusive U.S. distributor Global Vehicles U.S.A., Inc. confirmed today.

"Global Vehicles and its dealers remain willing, ready and able to begin the sale of Mahindra vehicles as soon as they can be delivered," said Global Vehicles CEO John Perez. "We placed this substantial order in good faith because we want to get down to business and so do our dealers."

Mahindra issued a statement in India yesterday confirming that it rejected the order. But the company has not explained its motives for breaking the contract, especially its arbitration clause.

"Our contract with Mahindra requires disputes to be taken to arbitration and both parties are obligated to conduct 'business as usual' until there is a ruling," said Perez. "We initiated arbitration before Mahindra claims the contract expired and they should not disrespect the process and break the law by continuing to act in bad faith."

In addition to initiating arbitration, Global Vehicles is pursuing claims against Mahindra in U.S. Federal District Court to protect is contractual rights.

"We're grateful that this country has strong contract laws and statutes that protect big car companies from steamrolling their dealers and distributors," Perez said. "We're confident in our position because it's simple and it's the truth, and we look forward to hearing Mahindra's sworn testimony."

Global Vehicles believes that Mahindra purposely delayed the EPA certification process so it could invoke a contract clause that would allow it to walk away if the trucks could not be certified for sale in the United States. Global Vehicles extended the deadline for certification three times, with the latest deadline set at June 11, 2010.

Mahindra submitted its certification paperwork to the EPA about 10 days after the June 11 deadline, and announced in an Aug. 20 press release that its vehicles were certified for sale.

Mahindra demanded the clause at the eleventh hour before the contract was signed in 2006 because it expressly wanted to limit its losses if the trucks could not be certified for sale here. Earlier this year, well before the June deadline, Global Vehicles asked Mahindra to remove the clause because it was no longer applicable and they refused. Global Vehicles later asked Mahindra for another extension but was again refused.

Together, Global Vehicles and the nearly 350 Mahindra dealers it recruited in 49 states have invested almost $100 million to bring the rugged, affordable and fuel-efficient trucks to the United States.

Global Vehicles U.S.A., Inc., based in Alpharetta, Ga., is the exclusive importer and distributor in the United States of motor vehicles produced by the automotive arm of the Mahindra Group (www.mahindra.com), a $6 billion-plus diverse conglomerate.

SOURCE Global Vehicles U.S.A., Inc.

Mahindra Rejects $35 Million GV Pickup Order

A press release this morning indicates that Mahindra & Mahindra Ltd has rejected a USD $35 million order for the Indian made Mahindra compact diesel pickup trucks placed by its US importer and business partner, Global Vehicles USA.


The release goes on to state:

“Mahindra views this order as another example of Global Vehicles' policy of engaging in PR theatrics while pursuing an unnecessary lawsuit. This is Global Vehicles' continued attempt to manipulate the press to damage Mahindra's reputation. Mahindra also believes that this is an attempt by Global Vehicles to distract Mahindra from pursuing other plans to bring its vehicle to the US market.”

To read the entire press release, click here: Mahindra Rejects any attempt by Global Vehicles to order Mahindra vehicles as it is Invalid

Source: Mahindra

In the End, It’s All About the Truck

Indian conglomerate Mahindra & Mahindra Ltd has made it clear that they no longer consider US-based importer Global Vehicles (GV) as a business partner, and have spent the last four months trying to sever their once amicable relationship with them. Recently, Global Vehicles’ CEO John Perez has spoken out, and has made it clear that he feels that Mahindra has abused elements of a contract which were negotiated in good faith. This all takes place while dealers look on and wonder if they will be speaking with Alpharetta or Mumbai once the dust has settled over this battle to sell the first India-made vehicle in the US.


Side with one company or the other if you will, but it all comes back to the truck. It may not be an earth-shattering vehicle. Maybe it’s not even worth fighting for, but without a doubt, it is a groundbreaking truck on many levels.

The recurring rally cry heard from nearly all of the Mahindra pickup lovers and haters out there is that the US market is primed and ready for a fuel-efficient, straight forward, reasonably priced, compact-to-midsize, diesel pickup truck.

After reading countless article comments and forum threads over the past three years, it has become crystal clear that Americans are ready for this product. It becomes equally clear that while there are plenty of fans dedicated to the Mahindra TR20 and TR40 pickups, there are many more consumers that do not care which manufacturer produces this type of vehicle. They just want the compact diesel pickup concept to become a tangible reality so that they can put their money down on it as soon as possible.

The he-said/she-said reports from both sides are likely to be silent for a while. Today, arbitration between Global Vehicles and Mahindra & Mahindra begins in International Court in London (per the original 2006 agreement). No matter how the arbitration is resolved; America has spoken, and we are ready for a new breed of small pickup trucks.

We want your truck, Mahindra. And we want Global Vehicles to supply reliable US-based support. But keep in mind that if you don’t make this truck happen soon, one of your established competitors surely will.

Mahindra SUV and Pickup Sales Increase 14%

Mumbai, India based, Mahindra & Mahindra Ltd, has released its August sales report indicating that full range domestic auto sales have increased 29% and sales of it’s SUVs and pickups have increased 14% over August 2009 figures.

The Indian utility vehicle maker, who is expected to sell low-priced, 30 mpg, diesel compact pickup trucks in the United States beginning in December of 2010, has been experiencing significant growth in 2010 despite parts shortages which have hampered full growth potential.

The anticipated US market Mahindra TR20 and TR40 pickup trucks are set to launch this December, and an SUV variant (Mahindra Scorpio) is rumored to launch sometime in 2011. US emissions certifications for the pickups were obtained in August and the Scorpio SUV has recently been seen testing in the southern United States. However, Mahindra is currently battling a lawsuit brought on by their US import partner, Global Vehicles USA, and Mahindra has not publicly indicated whether or not Indian production of the US bound vehicles has even begun.

Source: Mahindra

Indian Press: Mahindra Attempting to Remove Global Vehicles from Import and Distribution Partnership

India’s MoneyControl.com is reporting today via unnamed sources that the basis of the legal battle between Indian light truck manufacturer, Mahindra & Mahindra, and their US importer, Global Vehicles USA (GV), is due to Mahindra’s desire to control US distribution through their existing tractor distributor, Mahindra USA.


Mahindra has not commented on missing multiple US launch dates for the highly anticipated 30 mpg diesel pickup trucks. GV has initiated legal action against the Indian conglomerate, claiming they have purposely delayed the launch, in hopes that further delays may be mitigated. Mahindra has since countered GV’s accusations by claiming that the suit has no solid basis, in spite of Mahindra not filing required EPA documentation in order to sell their vehicles in the United States.

The report claims that Mahindra wanted to buy out Global Vehicles, but that an accord could not be reached, resulting in legal arbitration. The report goes on to state that Mahindra now desires to use their existing US tractor enterprise, Mahindra USA, to control import and distribution of the pickup trucks.

The article also states that Mahindra still intends to launch the US versions of the pickup before the end of 2010.

The report is found here: M&M, Global Vehicles in legal tussle over entry in US

Thanks for the tip, PeeWee.

Global Vehicles Responds to Mahindra’s Further Delay Comments

Global Vehicles USA, exclusive US importer for Mahindra vehicles, has issued a press release this afternoon regarding comments made by Mahindra & Mahindra president, automotive sector, Pawan Goenka regarding further launch delays of the India-built pickups.


The press release reads:
“ALPHARETTA, GA., July 8, 2010-It has been recently reported in the media Mahindra is claiming its pending litigation with Global Vehicles may delay the introduction of its vehicles to the United States market. This claim is both inaccurate and unfortunate. Indeed, in the litigation Global Vehicles seeks to compel Mahindra to honor its contractual obligations to obtain homologation of the vehicles and to begin shipping them pursuant to existing and long standing orders placed by Global Vehicles on behalf of its many dealers. Global Vehicles was constrained to take legal action as a result of Mahindra’s unjustifiable delay in making its vehicles available and to otherwise protect Global Vehicles’ dealers who have waited long enough for product. Global Vehicles and its dealers stand ready, willing and able to immediately begin selling Mahindra vehicles in the United States. All Mahindra needs to do is complete homologation and start delivering them. Thus any delay in entering the United States market rests exclusively with Mahindra and can in no way be attributable to the litigation or any actions of Global Vehicles.”

Global Vehicle’s statement lobs the ball back into Mahindra’s court. MP will continue to follow each volley.

Source: Global Vehicles

Mahindra Files For Dismissal of Global Vehicles Lawsuit

According to GlobalAtlanta.com, Indian conglomerate Mahindra & Mahindra Limited has countered a lawsuit filed against them by US-based vehicle importer, Global Vehicles USA, Inc. On June 28th, Mahindra filed a request for dismissal of the lawsuit.


Georgia based Global Vehicles (GV) is the exclusive importer for a yet-to-be launched line of India-made Mahindra pickup trucks. On June 14th, GV filed a lawsuit in US district court against Mahindra for USD $35 million, claiming that Mahindra has repeatedly and purposely delayed the release of their US line of 30 mpg, diesel-powered pickup trucks.

Since news of GV’s lawsuit first broke, Mahindra & Mahindra’s vice chairman and managing director, Anand Mahindra, has publicly stated that the grounds of the lawsuit are baseless. It appears that this request for dismissal backs up those statements.

Mahindra is claiming that the dispute should be resolved in arbitration, not in a US federal court. Mahindra calls into question the jurisdiction of any US court over the Indian company’s agreement with GV. The filing also claims that Mahindra has not been properly served by Global Vehicles who has submitted paperwork to a US Mahindra subsidiary, and not directly to Mahindra in India.

Despite legal posturing by both parties, it appears that Mahindra still has not obtained EPA certifications for the US-bound pickups, nor have they formally registered trademark protection for the Mahindra TR20 and Mahindra TR40 names. The request for dismissal of the lawsuit does not address accusations of purposeful delivery delays claimed by GV, but does suggest that Mahindra would prefer to negotiate with Global Vehicles behind closed doors instead of in the public realm.

Stay tuned.

Source: GlobalAtlanta

Mahindra Speaks: Joint Ventures, Acquisitions, and US Vehicles

“Unfortunately, I can’t talk too much about it because it’s a legal situation. But it’s unfortunate, and we have to be honest about that. It’s not something we would have liked to happen, it’s something we are dealing with and hope to overcome it. All we are saying is that we remain committed to entering the market, but clearly this is an obstacle.” Anand Mahindra, Vice Chairman, Managing Director, Mahindra & Mahindra; regarding the lawsuit filed against Mahindra & Mahindra by US Mahindra vehicle importer, Global Vehicles USA


India’s Economic Times interviewed Anand Mahindra to get his perspective on Mahindra & Mahindra’s many recent partnerships and acquisitions in the technology, automotive, and aerospace industries.

Mahindra & Mahindra has recently acquired Australian aircraft manufacturer Gippsland Aeronautics, with the intention of building fixed-wing aircraft in India within the next three years. Mahindra has also taken over majority stake in Indian-American electric car company, Reva. Most recently, Mahindra has been rumored to be communicating with Proton/Lotus about a partnership, and they are currently completing due diligence on the potential acquisition of failing South Korean auto manufacturer, Ssangyong.

Mahindra clearly has high expectations for M&M and India to become global economic and technology powerhouses. In the interview, Mahindra emphasizes that there is method to their JV and acquisition madness:

“We will do joint ventures with other elements of the automotive industry, whether it’s trucks, vans two wheelers, everything else. We are open to alliances because what they allow us is to mimic the benefits of a large automotive company. And when you add our tractors into this then we are a company which is already over half million vehicles without even counting two wheelers which are growing, and not even counting trucks. Nobody can actually say that we have drawbacks of a niche player. We have the volumes to build scale where scale is needed, procurement, R&D etc.” – Anand Mahindra

While Mahindra is very clear about on-road vehicle and tractor market strategies, it is still unclear when their line of 30mpg, all-diesel, pickup trucks and SUVs will arrive in the United States.

Anand Mahindra’s comments certainly seem to suggest that the lawsuit filed by Global Vehicles could delay the US introduction of these rugged, India-made pickups beyond the currently expected December 2010 launch date. Further delays would be ironic considering that the foundation of the lawsuit accuses Mahindra of purposely delaying their entry into the United States. The future of the Mahindra TR20 and TR40 pickups is still unknown.

To read the entire interview, click here: None of our M&As are done for ego and size: Anand Mahindra (popup warning)

Episode V: Anand Strikes Back

"Yes, an unfortunate development. Groundless charges; Can't comment since now legal,"

- Anand Mahindra, Vice Chairman, Mahindra & Mahindra (via Twitter, @AnandMahindra)

The Times of India reports that Mahindra finds the lawsuit filed against them by US importer, Global Vehicles USA, Inc., to be without merit. Mahindra intends to refute GV’s allegations that Mahindra has not held up to US vehicle delivery expectations.

To read the complaint filed by GV in Atlanta District Court on Monday, follow the link to Jalopnik who have been kind enough to post the document in its entirety: This is the Lawsuit (Thanks GoSlicker007 for the tip)

Sources: Times of India, Jalopnik

Official: Mahindra Has Now Pissed Off Everyone in the USA

PickupTrucks.com broke news yesterday (via GlobalAtlanta.com) that US-based vehicle importer, Global Vehicles, USA, has filed a lawsuit against Indian SUV manufacturer Mahindra & Mahindra Limited.

 

Global Vehicles USA, Inc is the Alpharetta, Georgia based company designated as the official importer for India-built Mahindra diesel pickup trucks which have been expected for sale in the United States since 2009. The lawsuit is over Mahindra’s delays in readying the vehicles for sale on US soil.

 

Repeated delays, nonexistent advertising, delayed action on key milestones, and near total lack of communication from the USD $6 billion Indian conglomerate has created considerable tension between Mahindra and their US importer. Much of the stress has seemingly intensified in the past year.

 

Global Vehicles has reportedly spent almost USD $35 million dollars preparing for the launch after establishing well over 300 dealers across the country. Considering that each dealer had to fork over around USD $200,000 for the privilege of becoming a Mahindra franchise, then had to commit to building a Mahindra-specific facility at each location; it is easy to understand how Mahindra has built their US enterprise on a foundation of frustration.

 

The dedicated American fan-base who have been patiently waiting for Mahindra’s mid-size, 30-mpg diesel pickups, have been riding the relentless seas of anticipation and disappointment. The last rogue wave to rock the hardcore Mahindra fan boat was the announcement by Mahindra in May stating that US-bound Mahindra TR20 and TR40 pickups would not be available until December 2010.

 

Even MahindraPlanet.com’s own hack editor has personally felt the mighty Mahindra wingtip painfully displace his dangly bits in recent weeks.

 

Several scenarios may be construed at this point:

• GV is feeling serious pressure (from their bankers and dealers) to do whatever they can to force Mahindra to deliver vehicles ASAP. A lawsuit could be a motivator.
• Mahindra is purposely dragging their feet because they are truly not prepared to launch vehicles in the US for some reason.
• Mahindra is dragging their feet because they want to get away from GV and establish their own in-house distribution of Mahindra vehicles in the US.
• Mahindra is dragging their feet because they want to boot GV and go with another US-based importer.
• Mahindra has gotten cold feet and are going to scrap their US plans altogether.

 

 Some things just aren’t adding up either:

•  Mahindra has still not filed emissions certification paperwork with the EPA
• Mahindra has still not completed the needed formal use requirements to register US trademarks for    “Mahindra TR20” and “Mahindra TR40”. Mahindra applied for the trademarks nearly a year and a half ago, but have not followed through with registration.
• Mahindra has not made any effort to directly promote or advertise Mahindra vehicles in the United States, despite hiring two internationally known advertising agencies to do so.
• Mahindra has allegedly built 175 US-spec, pre-production TR pickups in India, but apparently none have been sent here for evaluation or testing.

 Is it going to happen? Has Mahindra burned too many bridges before even delivering a product? If/when the trucks get here will Mahindra bust out some sweet Jedi mind tricks and get everyone forget about the current drama and delays?

 

We’ll let the reader ponder these points. While this all gets sorted out, Mahindra Planet will be driving around in our exclusive Mahindra TR40 Unicorn Edition pickup… and wearing a cup.

 

Source: PickupTrucks.com

Mahindra Launch Delays: Is 2010 Too Soon?

Automotive News published a fantastic report by Lindsay Chappell on the state of Mahindra’s US vehicle launch on Monday. It has subsequently been hacked by the blogosphere into disjointed, bite-sized chunks of reconstituted “news”. We’re not going to do any further disservice to AN here, so please click this link, read the article in its entirety, then finish reading this Mahindra Planet commentary. Automotive News: Mahindra Dealers are Still Waiting


Missed Dates
Although AN was unable to contact Pawan Goenka for a comment on the delays for their article, Mahindra Truck Forum member, Joe Callimachus was able to directly contact Goenka by email late last week. His letter follows:

Pawan,

On March 4th you told Reuters that Mahindra would be announcing the times for the US launch of the Mahindra Pickups, TR20 and TR40, in 2-3 weeks. It's officially three weeks today.

I really need to decide on buying a new pickup and the TR20 is exactly what I want. But I can’t keep waiting forever. My F250 is literally falling apart. I just had to take one of the fuel tanks off ‘cause it rotted away.

I would like to know if you are going to get the EPA certification and start production of these trucks soon. If not I will have to start looking at other trucks that I really don't want.

Yours truly,
Joe Callimachus

Goenka responded to Callimachus’ letter with the following:

Joe,

Thank you for your interest in the Mahindra Pickups. It is very encouraging to note that there are customers waiting to purchase these vehicles. Unfortunately we are not in a position to announce a definitive date as we are still waiting for the homologation process to be completed. Only after the process is completed can we give a firm date. Hope you are able to wait for the vehicle.

Regards,
Pawna Goenka
President (Automotive Sector) Mahindra and Mahindra

Obviously, Goenka is very noncommittal at this point, as is Global Vehicles. This only reaffirms contact that Mahindra Planet has had with GV and franchised dealers. All news and timelines on the launch have been driven by India since the start of 2010. Global Vehicles has taken a stealthy approach to PR and media, only passing on information as they get it, and not offering much more. It’s better to keep quiet, than to keep pissing on the customers’ Cheerios.

Feeling the Love/Hate
The overall feeling among dealers and fans is positive about Mahindra products, and most are confident that Mahindra will be a great success… once they get here. Some of the web media seems to perpetuate the gloom and doom of missed launch dates and lack of information (not that we haven’t done it either).

Whatever. That’s old news, so get over it. Part of Mahindra’s (and GV’s) charm is that they are so excited about, and emotionally invested in, their product that they tend to be overly optimistic on announcements and timelines. Does it hurt their credibility? Possibly. But then, would you rather be known for multiple missed launch dates, or for selling a crappy product that falls apart, or possibly accelerates your customers into oblivion, or worse?

Tensions Are High
Clearly there are strained relations between GV and Mahindra. GV finds themselves precariously hanging onto millions of dollars in franchise money from dealers who are spending even more money to pepper the country with proper sales shrines for Mahindra vehicles (insert your own Taj Mahal quip here). In return, Mahindra will not commit to a go date.

We’ve Waited This Long
Between supplier issues in India, the complexities of making a new vehicle ready for the road in the United States, and the development of new world-market platforms, there certainly could be concern that even a summer of 2010 launch may not be a possibility. Mahindra Planet has previously questioned some of the logic in actually launching the current first generation Scorpio platform (TR20 and TR40) in the US when the second generation vehicle looms large on the horizon.

Keep in mind that the truck Mahindra is trying to launch here is new to us, but was first introduced to India in 2002. Aside from the arguably relevant and truly geriatric Ford Ranger, eight years is ancient history for any unchanged vehicle platform for sale in the US.

From the AN article:

Speaking with Automotive News last year, Goenka said Mahindra's entry into the United States was important -- but not the company's most important current project. He said only about 6 or 7 percent of Mahindra's total global engineering force of 1,000 was working on the U.S. entry.

"We also have three new vehicle platforms we're working on right now and just completed a fourth," Goenka said. He said that entering the United States would cost half as much as developing a new vehicle platform.

More important, he said, was doing it correctly: "A launch date is very important to us, but not as important as getting our product right."

At this point, would it make more sense to redirect the efforts of those engineers working on Americanized pickup design projects and ensure that the next generation trucks are inherently designed with the US-market in mind?

If Mahindra were to scrap plans to bring the current generation TR20 and TR40 to the US, do a post-mortem on everything they have learned about developing a US vehicle, and use that knowledge in making a solid effort with a brand new truck, would they lose any more face than they already have? Again, we’ve waited this long for Mahindra, what are another few months or even another year going to matter.

Go ask your neighbor if they plan to buy a new Mahindra this year. Unless they are highly aware of auto industry news, a farmer, or possibly Indian-American, they probably won’t have a clue what you are talking about. It’s easy for all of us closely involved in Mahindra goings-on to assume that everyone in the country is on the edge of their seat waiting for these trucks. In reality, if Mahindra were to wait until 2011 to launch an all new truck, most Americans would be none the wiser, but maybe all of us hardcore fans would reap benefits worthy of our patience.